The field of the present disclosure relates generally to identifying compromised payment accounts, and more specifically, to network-based systems and methods configured to identify compromised payment accounts using historical authorization messages.
Payment accounts and payment cards (e.g., debit cards, credit cards, etc.) may be subject to fraudulent activity, such as theft and data breaches. These compromised payment accounts may be used in fraudulent transactions with merchants to purchase goods and/or services at the expense of the cardholder. If a fraudulent transaction is contested (i.e., by the cardholder), liability of the fraudulent transaction is determined, and the liable party is responsible for reimbursing the legitimate cardholder for the fraudulent transaction. In some embodiments, the liable party may be a merchant associated with the fraudulent purchase.
In at least some known systems, to prevent fraudulent purchases, the merchant requests information about compromised accounts from issuing institutions (e.g., banks) and/or a payment processor that processes transactions via a payment network. The payment network is configured to facilitate communication between various parties associated with a payment transaction. However, these requests rely upon the merchant to request compromised account information for specific payment accounts. Moreover, the compromised account information may be stored in various, separate databases, which may increase the number of requests transmitted by the merchant, thereby potentially increasing the bandwidth and processing burden of the payment network. These requests also increase the processing demands on the merchant to identify compromised payment accounts, which may impact the merchant's bandwidth and processing time for other processes, such as processing the transactions.